ALCOA BACKS RESTART OF SAN CIPRIAN ALUMINUM SMELTER IN 2024 WITH LONG-TERM RENEWABLE ENERGY CONTRACT

The multinational Alcoa Corporation has ratified the signing of a renewable energy contract to support the planned 2024 restart of aluminum smelting at the company’s San Ciprián smelter in Spain. The long-term power purchase agreement is with Greenalia, an independent renewable energy developer and producer, and would begin in 2024 through the end of 2033.

Álvaro Dorado Baselga, Global Vice President of Energy at Alcoa and President of Alcoa in Spain confirms that “this energy contract is a very important step for the long-term viability of San Ciprián. We are working to fulfill our commitments to the workers’ representatives, and the government’s support in developing the necessary energy framework remains vital.”

Due to exorbitant energy prices, Alcoa announced last December 2021 a two-year curtailment of aluminum smelting at the plant. However, during the downsizing, Alcoa is working to secure power purchase agreements and make improvements to prepare the smelter for the planned restart to begin in January 2024.

In this way, the agreement is expected to provide up to 183 megawatts of the smelter’s baseload power consumption, representing approximately 45 percent of the power required to meet the smelter’s maximum capacity of 228,000 metric tons per year. The pricing terms of the contract are confidential. Nevertheless, Alcoa continues to pursue options for the remaining 55 percent of the smelter’s electricity requirements.